Which of the Following Statements About the Cash Account Are

question 125

Multiple Choice

Which of the following statements about the Cash account are true?

• A)Because most companies earn their fees in cash,the cash account is categorized as revenue
• B)For any given transaction Accounts Receivable and Cash can be used interchangeably because both accounts are measured in terms of cash
• C)The cash account includes the value of any medium of exchange that a bank accepts for deposit
• D)Both A and B are true statements
• E)Both B and C are true statements

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Definitions:

Operating Expenses

Operating expenses are the costs associated with running a company's core business operations, excluding the cost of goods sold, such as rent, utilities, and payroll.

Merchandising Business

A type of business that purchases goods and sells them at a higher price without changing their form.

Merchandising Income Statement

A financial statement that shows the gross profit, operating expenses, and net income of a company that buys and sells goods.

Administrative Expenses

Administrative Expenses are costs related to the general operation of a business, including expenses such as office supplies, salaries of administrative personnel, and rent.